Financing & Leasing
Whether you are looking for traditional loan financing, an operating lease, or a lease-to-own option, Davey Coach is committed to providing you with the most practical information for various leasing, financing, and payment options along with your bus pricing. Our goal is to support and help you with your purchasing decision.
Cornerstone Bus Leasing & Rentals
Cornerstone offers creative financing solutions which are typically not handled through traditional lenders, such as seasonal leases, short term leases, daily/weekly/month-to-month rentals, and additional opportunities when traditional financing may not be approachable. Speak with your Davey Coach representative or visit Cornerstone’s website today for a free online quotation and additional information!
See a representative or visit Cornerstone’s website today for a free online quotation and additional information!
Highlights About Financing
Operating or Closed End Lease
An operating lease is a lease agreement in which the lessor owns the equipment and leases it to the lessee for a term, in most traditional applications, generally between 36 and 84 months. An operating lease may provide the lessee with off-balance sheet financing if the lease meets certain accounting criteria. At the end of the initial term, the lessee may return the equipment to the lessor or re-lease the equipment for another specified term.
Traditional Loan Financing
Traditional loan financing is a structure by which an equipment purchase is financed on a fixed rate basis. The lessee retains the tax ownership of the equipment and related depreciation and is the owner of the equipment once the account is paid in full.
TRAC Lease or Open End Lease
This type of lease contains a Terminal Rental Adjustment Clause (TRAC) that states that at the end of the lease term, the equipment will be sold, either to the lessee or to a third party, for its Fair Market Value.
Pursuant to the Terminal Rental Adjustment Clause, if the NET proceeds received by the lessor, upon sale of the equipment, were in excess of the Terminal Rental Adjustment Clause amount (also referred to as the residual) established in the lease, such excess proceeds would be paid to the lessee. Conversely, if the vehicle is sold for less than the established TRAC amount, the lessee is required to reimburse the lessor for the short fall. This lease structure is common for business owners who desire the option to purchase the vehicle for a pre-determined price at the end of the lease.